This would mean that the UK will be one of four countries with a negative growth rate in its tech market, the other three being the Czech Republic, Italy and Mexico.
The prediction in Forrester‘s ‘Global Tech Marketing Outlook For 2020-2021’ could also mean that the market growth rate across Europe will slow down to just 0.4%.
Europe’s growth, according to the report, will also be hurt by trade tensions between the US and China.
“Economic growth is slowing, especially in the US, China, the UK, and other major economies, as tariff and trade disputes, international political disruption, and deflationary pressure weigh down business investment and consumer confidence,” said Andrew Bartels, vice president at Forrester.
“These concerns will cause CIOs and their business partners to adopt a more cautious approach to their tech spending, resulting in a slowdown in business and government purchases of tech goods and services.”
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Forrester’s findings come despite the UK seeing a record high of £13.2 billion in tech investment in 2019, a growth of 44% on 2018, according to research from Tech Nation and Dealroom.co.
Globally, the tech market growth rate is estimated to fall to 2.8% and then 3.1% in 2020 and 2021 respectively.
Growth in the global tech market has experienced swings in increase and decline over the past few years; in 2018, the growth rate was found to be 5.7%, before it went down to 3.9% in 2018.
However, the decline in the market could be beaten by investment in certain cloud services.
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“Spending on tech consulting services and tech outsourcing services, where we count cloud Infrastracture-as-a-Service, will grow faster than the overall tech market,” Bartels explained. “But computer and communications equipment investment will be very weak, as will spending on voice and data telecommunications services.”
